1. Telecommunications and cable Television (CATV) are originally attached to different businesses. Improvement in transmission technology blurs the boundary between Telecommunications and CATV, showing the trend of combination. 2. There are about 350 CATV broadcasting operators presently in Taiwan. After integration, 100 operators are estimated. Due to capital shortage, operational hardship is inevitable. 3. The penetration of local telephone service presently in Taiwan stands at 114.4 telephones per 100 households. Telephone services cover everywhere in Taiwan area with advanced technology and sufficient capital. 4. According to CATV Act, cross operation between telecommunications and CATV is prohibited. But they can provide technical support and leased equipment to each other. 5. The term of expiry for CATV license is nine years. The government intends to revise the CATV Act currently to make cross operation is allowed as it is in the United States, but it may be too late to be of use. 6. This document suggests business activities should be market power-oriented. Deregulation makes it possible for telecommunications and CATV to cooperative operation in the way of strategic alliance. Subsequently, the four-wins objectives for telecommunications, CATV, consumer, and government will be achieved.